• Q : What michael''s deductible mileage is....
    Accounting Basics :

    Michael is the city sales manager for "Chick-Stick," a national fast food franchise. Every working day, Michael drives his car as follows:

  • Q : What her tentative amt is....
    Accounting Basics :

    For regular income tax purposes, Yolanda, who is single, is in the 35% tax bracket. Her AMT base is $220,000. what Her tentative AMT is ?

  • Q : What the amt adjustment for circulation expenditures....
    Accounting Basics :

    Sherry decides to capitalize the expenditures and to amortize them over 3 years for regular income tax purposes. what the AMT adjustment for circulation expenditures for the first year of operations

  • Q : How should able report this item on his 2008 tax return....
    Accounting Basics :

    On September 3, 2008, Able purchased § 1244 stock in Red Corporation for $6,000. On December 31, 2008, the stock was worth $8,500. On August 15, 2009, Able was notified that the stock was worth

  • Q : Interest receivable account based question....
    Accounting Basics :

    The Interest Receivable account for February showed transactions totaling $8,500 and an adjustment of $11,200. All of the following responses are correct except:

  • Q : Determine the cost recovery deduction for the year....
    Accounting Basics :

    Diane purchased a factory building on November 15, 1993, for $5,000,000. She sells the factory building on February 2, 2009. Determine the cost recovery deduction for the year of the sale.

  • Q : Determine the cost recovery deduction for 2009....
    Accounting Basics :

    On May 15, 2009, Brent purchased new farm equipment for $40,000. Brent used the equipment in connection with his farming business. Brent does not elect to expense assets under § 179. Brent does

  • Q : Determine the cost recovery deduction for 2010....
    Accounting Basics :

    On June 1, 2009, Irene places in service a new automobile that cost $21,000. The car is used 70% for business and 30% for personal use. (Assume this percentage is maintained for the life of the car.

  • Q : How much of the property taxes may julio deduct....
    Accounting Basics :

    On April 30, 2009, Julio sells his house to Anita for $230,000. On June 1, 2009, Anita pays the entire real estate tax of $7,300 for the year ending December 31, 2009. How much of the property taxes

  • Q : Cash method of accounting....
    Accounting Basics :

    Falcon Corporation, a C corporation, had gross receipts of $3 million in 2007, $7 million in 2008, and $6 million in 2009. Hawk Corporation, a personal service corporation (PSC), had gross receipts

  • Q : What amount must be added back to taxable income (loss)....
    Accounting Basics :

    In calculating Elizabeth's net operating loss, and with respect to the above amounts only, what amount must be added back to taxable income (loss)?  

  • Q : Determine janet''s cost recovery recapture for 2010....
    Accounting Basics :

    Janet purchased a new car on June 5, 2009, at a cost of $18,000. She used the car 80% for business and 20% for personal use in 2009. She used the automobile 40% for business and 60% for personal use

  • Q : How much, if any, of these expenses qualify....
    Accounting Basics :

    Twilight has medical staff in residence. Disregarding the 7.5% floor, how much, if any, of these expenses qualify for a medical deduction by Sandra?  

  • Q : Determine the cost recovery deduction for 2009....
    Accounting Basics :

    James purchased a new business asset (three-year property) on July 23, 2009, at a cost of $50,000. He did not elect to expense any of the asset under § 179, nor did he elect straight-line cost

  • Q : Determine his deductible loss on the car....
    Accounting Basics :

    Jim used the car 100% of the time for personal use. Jim received an insurance recovery of 80% of the value of the car at the time of the accident. If Jim's AGI for the year is $50,000, determine his

  • Q : Determine the cost recovery deduction for 2009....
    Accounting Basics :

    On June 1, 2009, Sam purchased new farm machinery for $50,000. Sam used the machinery in connection with his farming business. Sam does not elect to expense assets under § 179. Sam has, however

  • Q : What is the amount of retained earnings at the end....
    Accounting Basics :

    At the end of 2010, the company had total assets of $150,000, and at the end of 2011, total assets were $240,000. What is the amount of retained earnings at the end of 2011?

  • Q : Determine lana''s deduction for the lease payments....
    Accounting Basics :

    During 2009, she uses her car 20% for business and 80% for personal activities. Assuming the dollar amount from the IRS table is $233, determine Lana's deduction for the lease payments.

  • Q : Determine the cost recovery deduction for the year....
    Accounting Basics :

    Doug purchased a new factory building on January 15, 1987, for $4,000,000. On March 1, 2009, the building was sold. Determine the cost recovery deduction for the year of the sale assuming he did not

  • Q : Determine his cost recovery deduction for the car for 2009....
    Accounting Basics :

    Hans purchased a new passenger automobile on August 17, 2009, for $40,000. During the year the car was used 40% for business and 60% for personal use. Determine his cost recovery deduction for the c

  • Q : What is norm''s deductible loss....
    Accounting Basics :

    Norm did not file a claim against the insurance policy because of a fear that reporting the accident would result in a substantial increase in his insurance rates. His adjusted gross income was $14,

  • Q : Margin of safety as a percentage of sales....
    Accounting Basics :

    Palomo Corporation sells a product for $170 per unit. The product's current sales are 35,200 units and its break-even sales are 25,344 units. The margin of safety as a percentage of sales is closest

  • Q : How much of the passive loss may white corporation deduct....
    Accounting Basics :

    White Corporation, a closely held personal service corporation, has $150,000 of passive losses, $120,000 of active business income, and $30,000 of portfolio income. How much of the passive loss may

  • Q : Fundamentals of charitable contribution deduction....
    Accounting Basics :

     Prior to a charitable gift to the Plato University of land with a basis of $6,000 and a value of $13,000, All-Set, Inc. had taxable income of $50,000. If the dividends-received deduction was $

  • Q : What is the basis of the machine for cost recovery....
    Accounting Basics :

    On June 1 of the current year, Tab converted a machine to rental property. At the time of the conversion, the machine was worth $90,000. Five years ago Tab purchased the machine for $120,000. The ma

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